Malaysia’s clear policies led to RM160bil in approved investments in first half of 2024: Tengku Zafrul
04 Sep 2024
Domestic investments (DI) took the lead for the first half of 2024 (1H24), making up a significant 53.4 per cent or RM85.4 billion, of the total approved investments of RM160 billion for the period.
Malaysian Investment Development Authority (MIDA) said this reflected domestic businesses’ continued growth and confidence in the country’s economic policies.
In contrast, foreign investments (FI) accounted for 46.6 per cent of the total approved investments, worth RM74.6 billion.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia’s strong investment performance of RM160 billion, representing an 18 per cent year-on-year (YoY) increase in 1H24, is a testament to MITI’s commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth.
“ASEAN is forecast to grow at 4.6 per cent in 2024 and 4.7 per cent in 2025 on solid improvement in both domestic and external demand, and Malaysia is determined to capture this growth.
“The 1H24 approved investment figures reflect how investors appreciate Malaysia’s clear policies that provide a conducive landscape for companies to thrive. Driven by our robust frameworks, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy, and the Green Investment Strategy, more and more global businesses have begun to recognise Malaysia’s vast potential,” he said in a statement.
The top five states that attracted the most investment in Malaysia are Kuala Lumpur (RM37.6 billion), Selangor (RM35.0 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), and Johor (RM12.9 billion).
In terms of foreign investments. Austria led the approved investments with RM30.1 billion, followed by Singapore with RM16.5 billion, the People’s Republic of China (PRC) with RM9.8 billion, the Netherlands with RM4.0 billion, and Taiwan with RM2.4 billion.
Sectors aligned with the National Investment Aspirations (NIA) brought in RM81.6 billion, representing 51.0 per cent of total approved investments from 562 projects, set to create 35,780 jobs.
Under the stewardship of MITI and MIDA, 42.0 per cent of the total approved investments, valued at RM67.2 billion from 978 approved projects, will create 35,499 new job opportunities.
The services sector accounted for a substantial RM97.2 billion, or 60.7 per cent of the total approvals. It is expected to create 45,249 new jobs.
The growth was led by domestic investments, which made up 72.5 per cent of the total approvals in the services sector at RM70.5 billion.
Among the notable ventures in the services sector include Asiabina Solar Sdn Bhd, which is investing RM200.4 million in a 50 MW Large Scale Solar (LSS) Project in Parit Buntar, Perak, as part of its expansion into the renewable energy sector.
The manufacturing sector attracted RM60.1 billion in approved investments in the period, representing a significant 34.1 per cent increase from the RM44.9 billion recorded in the same period last year.
The approved investments are spread across 519 projects, poised to generate an estimated 33,887 job opportunities, with 80.0 per cent of the jobs (27,121) reserved for Malaysians.
FI contributed RM47.6 billion, or 79.2 per cent while DI accounted for a respectable RM12.5 billion, or 20.8 per cent.
Electrical and electronics (E&E) is the major industry underpinning Malaysia’s manufacturing economic growth, with approved investments of RM36.9 billion.
Meanwhile, MITI and MIDA have executed 11 high-level overseas investment missions to key countries such as Germany, France, Australia, Italy, Singapore, India, and Japan.
As of August 31, MIDA is actively pursuing 1,562 proposed projects worth RM54.8 billion, comprising 1,493 projects in the services sector (RM44.8 billion) and 69 projects in the manufacturing sector (RM10.1 billion).
While negotiations are ongoing between MIDA and prospect investors for high-potential leads totalling RM53.8 billion.
Meanwhile, from 2021 to June 2024, the National Investment Committee (NCI) approved 2,905 manufacturing projects, of which 76.6 per cent or 2,224 projects, have been implemented, including those in production, factory construction, or machinery/equipment installation.
This is followed by 21.7 per cent in the planning stage, covering projects in planning, site selection, and discussions with developers and consultants. Only 1.7 per cent of the projects remain unimplemented.
Source: NST
